How to Calculate Start Up Costs for a Pet Store

How to Calculate Start Up Costs for a Pet Store. If you're thinking of entering the retail pet industry, there are several preparations you'll need to make. Before you file for a business license or begin to accumulate stock, you need to calculate the start up costs for a pet store.

Find out what permits or licenses are required to open a pet store in your state, and the costs involved. Start with the local Chamber of Commerce and the Small Business Association.

Research commercial buildings available for rent in your area. Rent will vary depending on location and square footage. Plan to have 3 months rent in escrow before you open the doors.

Call several commercial insurance agents for a rough quote on both Liability and commercial Renter's Insurance. Be aware that in most cases, loss of livestock is not covered. If you have a fire, only cages and saleable items are replaceable by most policies.

Check out pricing on cages and food necessary for your operation. Remember to calculate enough products to sustain the animals you're selling, as well as to build and maintain stock available for customer purchase.

Seek reputable animal suppliers and find out what prices they charge. Make a list of the inventory you intend to have on opening day, and calculate the cost of purchase, delivery, feeding, housing and maintenance of the animals for a 3 month span. (They may sell during that time, but you must be financially prepared if they don't.)

Estimate your utility bills and payroll expenses including payroll taxes for 3 months.


  • Study your target market and competition carefully. Pet stores typically have high failure rates, so make certain you've done your research and have ample monetary reserves before opening one.


  • Never buy pets from unsavory dealers such as puppy mills. The treatment they give to the animals borders on barbaric. Instead, buy from responsible breeders or offer local animal shelters your secondary location to adopt out live animals.

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